Gold hangs around the $1600 an ounce level for yet another day. Just as it looks like lifting off so it loses any impetus and drops back. It is suffering from the summer blues just as it has for so many years. We take encouragement from its continuing steady support at $1600 and believe that before the end of August we will have seen the last chance to buy at around this level before it breaks out strongly to the upside.
Technically the gold price has been in an ascending triangle which signals a rise as it fights its way out which it just about has. The fundamentals continue to add up to an ever strengthening argument in favor of gold as more rounds of quantative easing, or whatever it may next be called, are expected from both the US and Europe.
Carrying on printing money not backed by any assets can only lead to the continuing devaluation of the currencies and eventual hyper inflation even though a short period of deflation is likely to occur.
There simply is no other practical alternative to protecting your wealth in the current circumstances than investing in gold. Beware of letting time run out at this price level before buying into gold. This may be as good as it gets!
Category: Precious Metal Investment News